Oklahoma News at a Glance: Tallgrass Energy Partners Consider Pony Express Acquisition

Leawood, Kan.-based Tallgrass Energy Partners LP (TEP) (NYSE:TEP) announced that Tallgrass Development LP has offered TEP the right to purchase a 33.3% interest in Tallgrass Pony Express Pipeline LLC for total consideration of $600 million.

The Pony Express project includes the conversion of an approximately 430-mile natural gas pipeline and the construction of an approximately 260-mile southward pipeline extension that will result in an oil pipeline from Guernsey, Wyo., to Cushing, Okla. Additionally, the project will include the construction of an approximately 66-mile lateral in Northeast Colorado that will interconnect with the mainline.

The company expects to place the mainline in service this year and the Northeast Colorado lateral in service by next summer.

A Conflicts Committee of the Board of Directors of TEP’s general partner, consisting solely of independent directors, will evaluate the offer with assistance from external advisors. The transaction remains subject to final review, negotiations, and approval by the Conflicts Committee and the board of directors of TEP’s general partner.

3 Ways Technology is Going to Shape the Oil and Gas Industry Free to Download Today

Oil and gas operations are commonly found in remote locations far from company headquarters. Now, it's possible to monitor pump operations, collate and analyze seismic data, and track employees around the world from almost anywhere. Whether employees are in the office or in the field, the internet and related applications enable a greater multidirectional flow of information – and control – than ever before.

Related posts

Subscribe to OILMAN TodayDelivered to your inbox

Subscribe to OILMAN Today, a biweekly newsletter delivered to your inbox covering oil and gas business news, current events and industry information you need to know about.